This week's troubles on Wall Street make me reflect upon an earlier downturn in the 90's in the financial services industry as i was a VP of HR to get a large national retail and mortgage commercial bank. While working in this industry, I managed two separate selective reductions in place affecting about 85 employees, plus a plant shut down of approximately 330 employees.
Certainly it would be a difficult time for me and for my employees. My husband called me "the black widow" then, asking me at the conclusion of each workday just how many employees I'd fired. Once I finished managing the plant shut down, Then i received my own severance package and exited the company to begin my own ring HR consulting utilize. I'd been offered the option in regards to a transfer to another division or a severance package. Quite honestly, I didn't want to manage anymore RIFs although I'd become an issue matter expert, of course opted for the severance package.
As the economy tightens, overall criminal activities increase hugely. This includes every type of crime from theft & embezzlement to workplace violence and corporate espionage. The American Bankruptcy Institute reports that consumer bankruptcy filings rose to 1.06 million in 2008, compared with 801,840 during 2007 & that trend will be far higher in 09.
More and more, individuals are facing increased financial pressures; which leads to a sharp spike in every one areas of crime and litigious demeanor. As individuals struggle with foreclosures, layoffs, rising expenses, increasing medical costs, and better interpersonal stress, elements increase the chance that employees will steal from employers, or leave the taking company assets or other sensitive information with the group. Expect IP theft and identity theft to reach record highs in the coming year, and take additional precautions guard your business' most precious assets.
Businesses both large & small are heading into bankruptcy in record numbers: 28,322 businesses filed in 2008 in addition to 29,960 in your first three quarters of 2008 (according towards the American Bankruptcy Institute), with no indications of slowing down soon. So it's not surprising to see theft & litigious activity sky-rocketing. The US Chamber of Commerce estimates that employee theft costs businesses $40 billion dollars each year. This total is much the value of street crime losses annually in the us. The US banking industry reports losses of in excess of $1billion annually could be well above the combined losses since bank robberies. American businesses lose about 5 percent of annual revenues to fraud resulting in staggering losses of around $638 billion (based on research by the Association of Certified Fraud Examiners). Compromised systems, data leakage, and network security vulnerabilities also top the list of damaging and criminal activities retail outplacement when the economy nose-dives. Businesses, governments and institutions reported nearly 50 percent more data breaches last year as compared to 2007, exposing the personal records of a 35.7 million Americans, according to the Identity Theft Resource Center of San diego. Organized crime rings are expanding, using insider employees, and are responsible for much of this theft. The FBI states that employee theft is the fastest growing crime found today.
Businesses should your effects of prior employees as well as recently laid-off employee behaviors, additionally existing employees. Employers and managers often overlook their existing employees who in a position to outwardly happy to take a job but inwardly feel they are owed more in the company for their loyalty, because their pay or options have been reduced, or simply as they quite simply often feel eligible for have more. The incidence of Workman's compensation claims are already increasing and incidents of petty theft internally within companies is at an all-time high.